Bad news about the rising cost of replacing systems that control excessive humidity in Nanaimo Aquatic Centre put a damper on city finances.
Councillors, at a finance and audit committee meeting Wednesday, May 21, heard that replacement of the aquatic centre's HVAC system will now cost more than double the original $5.7 million estimate.
Nearly 25 years after the NAC was completed in 2001, its HVAC is nearing the end of its service life. The system provides, heating, cooling and de-humidification inside the building’s pool area and also supplies hot water for the pools, showers and other sanitation facilities and, integrated with other systems, maintains conditions for the facility to meet health and safety regulations.
The system is so energy intensive that the NAC is the biggest greenhouse gas emissions producer of all City of Nanaimo buildings, burning about 32 per cent of all natural gas and 12 per cent of all electricity consumed by city facilities.
“The HVAC system to be replaced is required … and is considered fundamental to the operation of the facility,” said Darcie Osborne, city director of parks, recreation and culture, who described the NAC as a “flagship recreation facility” that serves about 1,500 people daily for recreation, rehabilitation, exercise, socialization and aquatic sports.
The project was awarded a grant for $3.4 million, applied for in 2022, from the joint federal and provincial Clean B.C. Communities Fund.
“However, the project budget has increased from $5.7 million to a projected cost of $12 million over the past three years,” Osborne said.
City staff recommended the 2026 budget for the project be increased by $6.7 million, to be funded by $1.5 million from the city’s facility development reserve fund and $5.2 million from the general asset management reserve fund in the 2025-29 financial plan.
Coun. Janice Perrino asked what ramifications could arise from delaying the work, "just for the public, so they understand, because it’s so monstrous it’s hard to grasp.”
Jennifer McAskill, city facility asset planning manager, said doing nothing is not an option. She noted that the scope of the work involves replacing two units that are about the size of two B-train semi-tractor trailer rigs inside the building, plus associated hot water tanks and piping. She said humid air removal is currently managed by repeatedly venting the entire volume of air in the building.
“Right now we’re managing it through exhausting 100 per cent of our inside air and bringing in new make-up air … it requires a lot of energy because we then, essentially, open the door and throw it all outside and then bring in new [air], reheat it and bring it into the pool space,” McAskill said.
Replacing the equipment is expected to cut the facility’s GHG emissions by about 800 tonnes of carbon dioxide annually, which is about 70 per cent of the facility's emissions and 13 per cent of overall City of Nanaimo corporate emissions.
Deferring the project could jeopardize losing the grant funding, which must be spent by 2028, unless a case can successfully be made the grant administrators to extend the deadline.
Coun. Erin Hemmens said the risk of losing the grant money is a significant risk to a project that "is an absolutely need-to-do.” Coun. Sheryl Armstrong agreed and said she was worried if there was a system failure that the city, being aware of the condition of the system, could leave itself open to a WorkSafe B.C. complaint.
Nanaimo Mayor Leonard Krog, said he's aware some members of the public may balk at the expenditure, but it's work that has to be done.
“We have a multimillion-dollar investment that is utilized by thousands of citizens week in, week out,” he said. “We have no alternative. We do not control the marketplace in terms of what contractors are available or the supply chain … I’m not looking for sympathy from the public, but I’m certainly hoping some people are listening and trying to understand the challenges that we face.”
The facility will have to be closed for an extended period, possibly two months, to complete the work.
Coun. Paul Manly asked if the work would be done in the summer months when the public can use lakes and the outdoor pool at Bown Park as alternatives.
Osborne said the city hopes to find a time that will lessen the impact on aquatic centre users.
“There really is no good time to shut down any facility for a length of time and it impacts various different operations within our community, but we are going to try to identify the best time and then back that out,” Osborne said.
Manly also asked if there were any other possible funding sources, and McAskill replied that the city’s contact at Clean B.C. has given no indication of future funding steams.
“There is a bit of a question now, with the removal of the provincial carbon tax, where some of this funding that has previously been received by municipalities will come from,” McAskill said. “Everybody that I have spoken to with respect to any level of climate-oriented funding is being quite tight-lipped about what may or may not happen in the future.”
The committee voted unanimously to recommend increasing the 2026 budget for the Nanaimo Aquatic Centre HVAC equipment upgrades project by $6.7 million from reserves.
